The Home Depot (NYSE:HD) GF Value Rank

: 5 (As of Today)

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The Home Depot has the GF Value Rank of 5.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison

For the Home Improvement Retail subindustry, The Home Depot's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

The Home Depot GF Value Rank Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, The Home Depot's GF Value Rank distribution charts can be found below:

* The bar in red indicates where The Home Depot's GF Value Rank falls into.

The Home Depot GF Value Rank Related Terms

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The Home Depot (NYSE:HD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » The Home Depot Inc (NYSE:HD) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

HD:Peru HD:Mexico HDId:UK 0R1G:UK HDI0:Germany HDI:Germany HDI:Germany HDI:Germany HDI:Germany HD:Chile HD:Canada HOME34:Brazil HD:Argentina

Address

2455 Paces Ferry Road, Atlanta, GA, USA, 30339

Website

https://www.homedepot.com

Home Depot is the world's largest home improvement specialty retailer, operating more than 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the United States, Canada, and Mexico. Its stores offer numerous building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of distributor Interline Brands in 2015 allowed Home Depot to enter the maintenance, repair, and operations business, which has been expanded through the tie-up with HD Supply (2020). Moreover, the additions of the Company Store brought textile exposure to the lineup, while Redi Carpet added multifamily flooring.

Executives

Kimberly R Scardino	officer: SVP-Finance, CAO & Controller	108 WILMOT ROAD, DEERFIELD IL 60015
William D Bastek	officer: EVP, Merchandising	2455 PACES FERRY RD., SE, C-20, ATLANTA GA 30339
Fahim Siddiqui	officer: EVP and CIO	2455 PACES FERRY RD., SE, ATLANTA GA 30339
Paula Santilli	director	PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Becker Caryn Seidman	director	65 EAST 55TH STREET, 17TH FLOOR, NEW YORK NY 10022
John A. Deaton	officer: EVP - Supply Chain & Prod. Dev	2455 PACES FERRY RD., SE, ATLANTA GA 30339
J Frank Brown	director	PARK AVENUE PLAZA, 55 EAST 52ND STREET, NEW YORK NY 10055
Albert P Carey	director	PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Manuel Kadre	director	2020 SALZEDO STREET, SUITE 301, CORAL GABLES FL 33134
Wayne M. Hewett	director	5 WESTBROOK CORPORATE CENTER, WESTCHESTER IL 60154
Gerard J Arpey	director	4333 AMON CARTER BLVD, FORT WORTH TX 76155
Helena Foulkes	director	ONE CVS DRIVE, WOONSOCKET RI 02895
Ari Bousbib	director	UNITED TECHNOLOGIES CORP, ONE FINANCIAL PLAZA, HARTFORD CT 06101
Linda R Gooden	director	LOCKHEED MARTIN CORPORATION, 6801 ROCKLEDGE DRIVE, BETHESDA MD 20817
Gregory D Brenneman	director